Cliffhanger no more? House pushing to final vote

Published on NewsOK Modified: January 1, 2013 at 8:53 pm •  Published: January 1, 2013
Advertisement

WASHINGTON (AP) — Weary lawmakers pushed at last toward a final vote on emergency legislation to avoid a national "fiscal cliff" of major tax increases and spending cuts in a New Year's Night culmination of a struggle that tested divided government to the limit.

Passage would send the measure to President Barack Obama for his signature and hand him a political triumph less than two months after he secured re-election while campaigning for higher taxes on the wealthy. The extraordinary late-night House vote was coming nearly 24 hours after Senate action spilled over from New Year's Eve into the pre-dawn hours of 2013.

In addition to neutralizing middle class tax increases and spending cuts that technically took effect Monday at midnight, the legislation raises tax rates on incomes over $400,000 for individuals and $450,000 for couples. Remarkably, in a party that swore off tax increases two decades ago, dozens of Republicans supported the bill at both ends of the Capitol.

Republicans did their best to minimize the tax increases in the measure.

Rep. David Dreier, R-Calif., in the final days of a 32-year-career in Congress, said the legislation was "not the grand bargain we'd hoped for" to reduce federal deficits. "But it is an essential bridge to what I hope will be a comprehensive and long-term solution. It will bring us back from the edge of the fiscal cliff and implement tax cuts for 99% of taxpayers."

Declared Rep. Marcy Kaptur, D-Ohio: "This is a great victory for the middle class, whose taxes will not go up tomorrow."

The bill would also prevent an expiration of extended unemployment benefits for an estimated two million jobless, block a 27 percent cut in fees for doctors who treat Medicare patients, stop a $900 pay increase for lawmakers from taking effect in March and head off a threatened spike in milk prices.

It would stop $24 billion in spending cuts set to take effect over the next two months, although only about half of that total would be offset with spending reductions elsewhere in the budget.

Even with enactment of the legislation, taxes are on the rise for millions.

A 2 percentage point temporary cut in the Social Security payroll tax, originally enacted two years ago to stimulate the economy, expired with the end of 2012. Neither Obama nor Republicans made a significant effort to extend it.

The fiscal cliff measure had cleared the Senate on a lopsided pre-dawn New Year's vote of 89-8, and House Republicans spent much of the day struggling to escape a political corner they found themselves in.

"I personally hate it," Rep. John Campbell of California, said of the measure, giving voice to the concern of many Republicans that it did little or nothing to cut spending.

"The speaker the day after the election said we would give on taxes and we have. But we wanted spending cuts. This bill has spending increases. Are you kidding me? So we get tax increases and spending increases? Come on."

House Majority Leader Eric Cantor told reporters at one point, "I do not support the bill. We are looking, though, for the best path forward."

Within hours, Republicans abandoned demands for changes and agreed to a simple yes-or-no vote on the Senate-passed bill.

They feared that otherwise the Senate would refuse to consider any alterations, sending the bill into limbo and saddling Republicans with the blame for a whopping middle class tax increase. One Senate Democratic leadership aide said Majority Leader Harry Reid would "absolutely not take up the bill" if the House changed it. The aide spoke on condition of anonymity, citing a requirement to keep internal deliberations private.

Despite Cantor's remarks, Speaker John Boehner took no public position on the bill as he sought to negotiate a conclusion to the final crisis of a two-year term full of them.

The brief insurrection wasn't the first time that the tea party-infused House Republican majority has rebelled against the party establishment since the GOP took control of the chamber 24 months ago. But with the two-year term set to end Thursday at noon, it was likely the last. And as was true in earlier cases of a threatened default and government shutdown, the brinkmanship came on a matter of economic urgency, leaving the party open to a public backlash if tax increases do take effect on tens of millions.

Continue reading this story on the...